3 Tech Stocks to Aquire in the Taper Tantrum

These 3 Tech Stocks Are High Quality Long-Term Buys

It is easy to see why the market was not pleased with the Fed's recent statement regarding tapering its total asset purchases. Due to impending interest rate hikes, technology shares have been taking a beating, which has been a major drag on the overall market so far this year. Looking back to 2013, when the Federal Reserve decided to reduce the volume of its bond purchases, U.S. Treasury yields reacted in a similar way to what we’ve seen recently.  A situation commonly referred to as the “taper tantrum”.

One of the most important things to keep in mind is that, despite appearances to the contrary, investing in high-quality firms will pay off handsomely over time. If we continue to see significant market volatility, there will undoubtedly be some intriguing possibilities for adding technology equities to your long-term portfolio, which is why it's a good idea to put together a shopping list now.

Here are 3 technology stocks to buy in the taper tantrum:

Alphabet (NASDAQ: GOOGL)

If you're going to invest during a period of uncertainty in the market, it's sensible to only acquire the finest of the best. Alphabet is often regarded as a company that fits into this category since it is the world's most popular internet search provider and largest generator of online advertising income. With every passing year, this business model will undoubtedly become more popular, as more people across the world gain internet access and marketers continue to invest in online and digital marketing. The stock is becoming increasingly appealing as the market retreats, with a consensus analyst price target of $3,271.49.

Alphabet is a huge internet content and information business, but there are several more exciting development prospects for investors to keep an eye on beyond its search engine division. Google Cloud is gaining market share and may take market share away from larger players in the years ahead, while YouTube is one of the greatest methods to profit from the increasing number of connected TV advertisements. There are several other aspects of this business that make it a top pick in the tech industry, including machine learning, smart homes and, self-driving vehicles.

Tesla (NASDAQ: TSLA)

Tesla is, to some extent, a tech company masquerading as an automobile manufacturer, and it's one of the best stocks to buy on significant pullbacks. The firm just announced a very impressive Q4 earnings beat of $2.54 adjusted EPS, versus the anticipated adjusted EPS figure of $2.36. Fourth quarter revenues increased by 65% YOY to $17.72 billion, and helped Tesla generate free cash flow of $2.78 billion in the quarter, surpassing the consensus predictions by over a billion for both metrics. Tesla's annual revenue has been on an amazing growth path over the last decade, and it's clear that the firm is still a major force in the electric vehicle market.

The worldwide move toward clean energy sources is just going to accelerate in the years ahead, which could mean bigger things for Tesla. The firm has also set the stage for increased production capacity with new factories in Germany and Texas, which will help it meet demand. The growing popularity of electric vehicles and the impending introduction of brand-new models, such as the Cybertruck and Tesla Semi, may be strong drivers for the share price in the months ahead. Supply chain issues and competing EV players are two risks to consider, but it's difficult to bet against Tesla's future success and the overall growth of the EV market since it has cemented its dominance among customers.

Qualcomm (NASDAQ: QCOM)

Semiconductor stocks have been under pressure during the recent tech selloff, but Qualcomm is one that has held up better than its competitors. It's an extremely intriguing firm to consider buying for the long term, because its products and services are essential for enabling innovative technologies like smartphones, tablets, mobile PCs, and more. Qualcomm is in a wonderful position to develop into a huge success as the smartphone business continues to flourish all across the world, since it obtains royalty income from almost 5G handset sold.

Qualcomm is also working on some fascinating autonomous driving technologies, as the company's Snapdragon Ride Vision system might be a major step toward making self-driving cars a reality. Qualcomm also recently announced partnerships with Honda and Volvo to give their vehicles improved in-cabin infotainment and capabilities, which is good news for investors hoping to see the firm expand its business approach. Keep an eye on how the share price changes after the company's Q4 results are released on February 2nd.


Loading comments...
You've successfully subscribed to MarketCents
Great! Next, complete checkout to get full access to all premium content.
Error! Could not sign up. invalid link.
Welcome back! You've successfully signed in.
Error! Could not sign in. Please try again.
Success! Your account is fully activated, you now have access to all content.
Error! Stripe checkout failed.
Success! Your billing info is updated.
Error! Billing info update failed.